NOG closes Delaware basin acquisition for over $468 million
(WO) – Northern Oil and Gas, Inc. closed its acquisition of northern Delaware basin assets from Novo Oil & Gas Holdings, LLC, an EnCap portfolio company, on August 15, 2023.
NOG jointly acquired the assets with Earthstone Energy, Inc., which will become the operator of substantially all the assets. In connection with the transaction, NOG and Earthstone entered into cooperation and joint operating agreements, which include a multi-year development plan for the Novo assets.
At closing, NOG paid $468.4 million in cash, funded in part by a $37.5 million deposit paid at signing in June 2023. The closing settlement is net of preliminary and customary purchase price adjustments and remains subject to post-closing settlements between the parties.